TO: Walt Wrede, City Manager
FROM: Carey Meyer, Public Works Director
DATE: January 29, 2010
RE: Homer Sanitary Sewer Rehabilitation Project Status of Funding
The City Council authorized applying for and accepting a $1,800,000 ARRA economic stimulus loan (90% forgiven) to complete lining of old sewer mains. The original project budget is shown in the first column of table below.
Bids for the work contemplated were lower than expected. ADEC required that we de-obligate the unused portion of the original funding (to be used to cover overages on other statewide projects). The project budget after the bid opening is shown in the second column of the table.
Original Budget Current
Budget After Bid Budget
Bid Preparation $ 50,000 $ 50,000 $ 44,000
Inspection $ 50,000 $ 50,000 $ 68,000
Construction $ 1,600,000 $ 897,896 $ 1,171,386
Contingency $ 100,000 $ 149,684 $ 121,259
Total Project Funding $ 1,800,000 $ 1,147,580 $ 1,404,645
Proposed City Responsibility $ 180,000 $ 114,758 $ 140,464
ADEC found it possible to add $257,065 back into the funding for the project. This will allow us to rehabilitate another 3600 linear feet of sewer pipe. Instead of contributing $180,000 to the cost of the project (as originally contemplated); the City will only need to contribute $140,464. The current budget is shown in the third column.
Recommendations: The City Council approve a resolution establishing a budget of $1,404,645 for the Sanitary Sewer Rehabilitation project.